Key insights
- Iran's signal of de-escalation reduces geopolitical risk, triggering a market rebound. The potential for reduced conflict in the Middle East alleviates concerns about oil supply disruptions and broader economic instability, supporting a positive outlook for US equities. However, the situation remains sensitive, and any renewed escalation could quickly reverse market gains.
Iranian President Pezeshigian stated that Iran has no intention of provoking a war, but is willing to end the conflict provided it is assured it will no longer be attacked. Pezeshigian described the military actions of the United States and Israel as unprecedented crimes and violations of international law, noting that Iran had engaged in good-faith negotiations prior to the attacks. He also noted that countries hosting U.S. military bases failed to prevent those bases from being used to launch attacks against Iran. Pezeshigian pointed out that halting aggression is the way forward, and that Iran is willing to end the conflict if security guarantees are provided; he urged Europe to abandon its current approach and called for professional cooperation in accordance with international law.